Middle East war: Iran threatens escalation as Hormuz crisis deepens
Iran threatens escalation as Hormuz shipping slows and oil prices surge
The Middle East war enters another tense day as Iran gives Washington what Reuters, citing a senior Iranian official, describes as “a few weeks” to meet its demands or face a shift to a fully offensive military posture. Tehran is demanding $300 billion in reconstruction funds, the release of frozen Iranian assets, an end to the US naval blockade, an end to the war on all fronts and a permanent resolution over the Strait of Hormuz. The Strait remains at the centre of the crisis. Tanker traffic has fallen sharply, with only five commodity vessels crossing on Saturday and none on Sunday, compared with 31 the previous weekend. Brent crude has climbed above $91 a barrel as markets assess the risk of prolonged disruption to global energy supplies. Elsewhere, Iraq has opened an investigation into an attack on the office of Kurdistan's prime minister. Kurdish authorities blamed Iran, saying Iranian drones targeted Prime Minister Masrour Barzani's personal office and the home of the head of the region's security and intelligence agency. No casualties were reported. Iran's Foreign Minister Abbas Araghchi condemned the attack and urged Iran's Kurdish allies to remain alert to what he called “false flags”. In the Red Sea, Yemen's Iran-aligned Houthis claimed to have attacked Saudi vessels off Mocha. Saudi authorities had not immediately confirmed the claim. Follow our live coverage for the latest verified developments:
Iran is weighing three measures to curb petrol use as war, import problems and a widening supply-demand gap strain fuel supplies.
The options include capping daily deliveries to petrol stations at 121 million litres; tightening vehicle quotas while selling excess fuel at market rates; or replacing vehicle-based quotas with monthly allocations of about 30 litres per citizen that people could use or trade.
No decision has been made, and subsidised fuel prices will not immediately change, Vice President Esmail Saghab-Esfahani said on state television. He added that the public would be informed before any policy took effect, Iran Wire reported.
Under the third plan, about 30 million litres a day would be reserved for public transport, taxis and ride-hailing services to limit fare increases.
It would also include a three-year programme to electrify 400,000 motorcycles, convert 130,000 pick-up trucks to natural gas and add 7,300 buses, although officials have not disclosed the programme’s financing or timetable, as per Iran International.
Iran’s new ‘infiltration’ bill has sparked backlash as it could make ordinary contact a crime. The bill before Iran’s parliament would impose new restrictions on contacts with foreign media, universities and organisations has drawn widespread objections over its potential impact on routine academic, cultural and civil-society activity, London-based Iran International reported.
Four airstrikes hit the Abu al-Zuhour military airport in the eastern countryside of Idlib on Tuesday, marking the first reported attack on the strategic facility since the fall of Bashar al-Assad's government in December 2024.
The aircraft involved have not been officially identified. The identity of the attackers remained unconfirmed. There were no immediate reports of casualties or the extent of damage at the base. The attack comes amid heightened regional tensions and continued Israeli military activity inside Syria. Israel has maintained positions in territory seized after Assad's overthrow and has carried out repeated strikes and incursions, citing security concerns.
During the initial months of the Iranian-US conflict, Washington’s primary objective was to weaken Tehran’s military capabilities and strengthen deterrence.
On the other hand, Iran sought to raise the costs of the conflict by targeting maritime navigation and energy infrastructure across the region, while demonstrating its ability to prolong the conflict.
Today, however, as the conflict enters its fifth month, the two opponents are faced with a different dilemma.
The United States has partially achieved its key military objectives, such as degrading Iran’s missile and drone capabilities, weakening Iran’s air defence network, reducing Iran’s naval threat and limiting Tehran’s ability to reconstitute its forces.
Day 160: Tehran reshuffles military
Day 159: Netanyahu rejects Gaza plan
Sign up for the Daily Briefing
Get the latest news and updates straight to your inbox
Network Links
GN StoreDownload our app
© Al Nisr Publishing LLC 2026. All rights reserved.